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The collar can be expanded to create a truly creative variety. The traditional collar (own 100 shares, sell 1 covered call, and buy 1 put) can be turned into a long-term protective version:

• buy 100 shares
• sell one very short-term covered call, maximizing annualized income as the result of time decay, picking a strike higher than the cost of your stock
• buy one long-term put (8-10 months)

This accomplishes a relatively high rate of return without the need to replace the put. The short call expires or

Enrique Suarez Presenting:

Global Derivatives: $1.5 Quadrillion Time Bomb

Source:

Stephen Lendman

Global Research, July 26, 2015

When investing becomes gambling, bad endings follow. The next credit crunch could make 2008-09 look mild by comparison. Bank of International Settlements(BIS) data show around $700 trillion in global derivatives. 

Along with credit default swaps and other exotic instruments, the total notional derivatives value is about $1.5 quadrillion – about 20% more than in 2008, beyon

Enrique Suarez Presenting:

“Buying Countries”, No Capital Controls for Oligarchs: Billionaire Warren Buffett Buys Greek Island

Source:

Michael Krieger

Global Research, July 22, 2015

Lliberty Blitzkrieg

If you want to see what unrestrained parasitic financial oligarchy ultimately looks like, look no further than the humanitarian crisis in Greece turned unprecedented billionaire opportunity. With global wealth becoming systemically concentrated in the hands of “insiders,” empty flats bought for tens of

When writing covered calls, it's important to accurately compare one expiration to another, to make certain that your analysis is accurate based on both rate and time. You can compare annualized returns under the following guidelines:

1. Make all yield comparisons to the strike. Use the strike for consistency, based on the rationale that if exercised, the strike will be the price at which you sell shares. Alternatives are to base the analysis on your stock basis or current price, but both of thes

Using options to focus more on either uptrend or downtrend is an effective method for augmenting the swing itself. The strategy assumes that you have an opinion about the prevailing direction of movement in the underlying, and that momentum confirms your opinion. So as a starting point, you can coordinate a weighting decision by checking some of the best momentum oscillators like RSI or MACD.

There are numerous methods for weighting one side or the other. On the bottom of the swing, bullish weigh

Think about your keychain. It probably holds the necessities: car keys, home keys, work keys, miscellaneous keychains you bought on your previous vacations. Now, imagine you have a keychain full of these keys that all look the same, but each only opens a specific door.

Sounds kind of like your list of passwords, right? But what happens when you have all of these keys, and you need to get into your house? In either situation it can be easy to forget which key, or password, goes to what door or web

You’ve been “Googled.” No matter how small a speck you think you are in this universe, you have without a doubt created an online footprint that is attached to your name. Chances are high that someone out there has followed this footprint of yours via a Google search.

Whether by a business colleague, family member or even a significant other, it’s reasonable to assume that your name will be “searched” online for personal information about you. But, what are the results of these searches? Are you

Traders hear about all kinds of risk, but one specific type is common to traders at all levels, but rarely if ever discussed.

Are you the victim of "self-discipline risk?"

Most traders are. You set rules for yourself but make the mistake of breaking them later, based on how prices change. For example, you go long on an option with the intention of selling under one of two circumstances. If the price rises, you will sell when you double your original investment. If the price falls, you will bail ou

Not all computer viruses immediately crash your device in a dramatic display. A virus can run in the background, quietly creeping around on its tip-toes, stealing things and messing things up along the way. If your computer has a virus, here’s what may happen:

• Windows suddenly shuts down.
• Programs automatically start up.
• Some programs won’t start at your command.
• The hard disk can be heard constantly working.
• Things are running awfully slow.
• Spontaneous occurrence of messages.
• The activity light on the

Creating synthetic long stock lets you open an options-based position that behaves exactly like 100 shares of stock, but without requiring you to invest in shares. In exchange, you are required to deposit collateral in your margin account equal to the strike value of a short position.

An example: You want to buy 100 shares at $60. You create a synthetic long stock position in options. The following options are available:

September 60 call 2.00
September 60 put 1.52

The synthetic long stock position

Hello all,

I am producing the new Marcus Evans Global Anti-Corruption and Risk Management conference and I am currently looking for experts in the field of anti-corruption and risk management to speak at the event in London, 18th to 20th November. 

I also still have one remaining workshop that still needs a leader. The workshop will be looking at the importance of education and training effectively your workforce so that they are aware of current regulation surrounding corruption and bribery. As w

CNN recently reported that the data breach of the IRS, which occurred between this past February and May, originated from Russia. The crooks were able to steal tax returns from over 100,000 people. The thieves filed a total of $50 million in tax refunds, having obtained personal data to get ahold of the data.

In other words, this crime wasn’t a hacking job. The Russians didn’t hack into the IRS’s network through some “back door” or social engineering scheme. They actually entered through the fron

The Harvard Business Review’s article “How to Live with Risks” reveals a common misconception that risk managers have about the sources of their risks, and how they should be conducting risk assessments.

This study suggests that while risk managers spend nearly half their time on legal and compliance related risks, they face a much greater threat of loss events from strategic and operational concerns.

A common risk assessment mistake is the inability to relate high-level strategic concerns to the

The short straddle is dangerous because, well for one thing, both sides are short. Making things even riskier, one side or the other is always in the money.

Even so, the true risk of the short straddle might not be as severe as traders often assume. Consider how much risk is reduced in the following circumstances:

1. Premium is very rich. The best short straddles (a short straddle is selling a call and put on the same underlying, same strike and same expiration) are those that, given the at-the-mo

The entire question of how the options pricing model can be used has been underway since the early 1970s when the original model was developed. Below is a repeat of the previously published discussion on this, published here is the recent past.

The big question, of course, is: How can we rely on a formula with a series of variables that are provably inaccurate and based on a flawed assumptions, exponentially inaccurate variables, and outdated models about the nature of options?

The pricing model u

There is good news for the tech-unsavvy out there: Google has made their privacy settings easier to work with. This day has not come a moment too soon. “My Account” is Google’s new dashboard.

When you use any Google account, the giant company collects information on you. The new dashboard will reveal what information this is. My Account also has other privacy related features; check it out first chance that you get. It has the following three sections.

Security

• If you get locked out of your Google

Traders are wise to select stocks for trading based on a few powerful fundamental signals and trends. Fundamental analysts can find value in dozens of ratios and trend. However, three exceptionally valuable indicators, when used together, provide a reliable method for narrowing down the list of candidates. These are debt ratio, P/E ratio, and dividend yield.

1. Debt ratio.

The debt ratio is easily overlooked because in focused on long-term debt. For tests of working capital, it is easier and more

Many option strategies are designed to create profit potential and also reduce risk. If you are willing to accept a limited level of both profit and risk, many spreads will do the trick. But these strategies are complex, and might not be worthwhile, given transaction costs and the need to monitor positions constantly. One solution is found in the box spread.

Spreads can be broadly defined as bull or bear. Either may be constructed using calls or puts. In a box spread, you combine bull and bear sp

Gamma confuses some options traders because it's a "secondary" indicator. It measures the speed of change in another indicator, delta.

Delta measures the rate of premium change in the options related to changes in the underlying (and of course is affected by time and proximity). Gamma measures how quickly delta moves. It tracks delta and reflects changing volatility, so looking at delta and gamma together is a great way to compare volatility between two or more issues.

Delta is measured with a sin

The latest report says that Darron Dellon Dennis Wint did not act alone in the arson murder of a Washington, D.C., family and their housekeeper. You might wonder how a $4.5 million mansion—presumably with top-flight smoke alarms—could burn enough to kill the occupants.

A cnn.com report says they were held against their will since the day prior to the May 14 fire. Wint is being held without bond.

It’s too soon, however, to draw conclusions, as other people are being interviewed by police.

Wint was a